Japan’s crude steel production is at a 56-year low. The Japan Iron and Steel Federation (JISF) published this shocking information. On January 23, 2026, at 03:43 JST in Tokyo, the federation reported that Japan produced 80.67 million metric tons of crude steel in 2025, marking a 4% decline compared to the previous year.
This unprecedented decline in production underscores the persistent tough times for the Japanese steel sector. Those 2025 production numbers are just the tip of the iceberg, signaling a growing decline of output that’s been underway for years now. State and national analysts point to rising competitive pressures from lower-cost imports as a major driver of this trend, especially imports from China.
What’s more, the decline in production is especially worrying given it highlights the continuing changes happening to the global steel market. Japan, formerly one of the world’s top steel producing countries, is now at risk of losing its status as a leader in the industry. The tsunami of cheap steel from China has only increased the competitive pressure, leading Japanese producers to reconsider their plans and business models.
External competition isn’t the only challenge they face. Domestic factors, such as dropping demand from core markets have brought production to a standstill. Sectors that have been typical steel markets—like construction and auto manufacturing—have seen shifting demand. These recent fluctuations are not about programmatic changes—it’s a direct result of constantly shifting economic conditions. At the same time, this has made it even harder for Japanese steelmakers to compete.
The JISF’s report should be a wake-up call to all of us — steel is being produced differently all around the world. As nations increasingly seek to reconcile their immediate economic demands with longer-term environmental goals, the steel sector’s ability to change will determine its future. Japanese producers are under enormous pressure from competition abroad and at home. In order to remain competitive in today’s market, they need to be able to react with smart, proactive strategies.